Grenada

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ABOUT GRENADA

Grenada at a Glance

With a population of around 110,000 on the island of 344 km2, the ‘Spice Isle’ is one of the most beautifully lush islands in the West Indies. Naturally exotic, Grenada’s breathtaking scenery includes mountain waterfalls and golden beaches surrounded by tropical rain forests. The view is appealing even to the most discerning world traveler. This mix of unspoiled authentic Caribbean of yesteryear and friendly and modern lifestyle today, makes it the perfect place to live and play.

  • Zero Tax: The island has no income, wealth or inheritance taxes. World Class University: Grenada is home to St. Georges University, unaccredited medical, veterinary and arts & science educational institution. There is no requirement to visit Grenada in order to qualify for citizenship.
  • Good Visa-Free Travel: The Grenada passport allows visa-free travel to more than 135 countries.

 

Population: 109 590 thousand
Form of government: Parliamentary democracy under constitutional monarchy
Official & spoken languages: English
Currency: East Caribbean Dollar
Time zone:  UTC-4
GDP (PPP): $1.467 billion
GDP (PPP)/per capita: $13.900
Average salary: 6400 EC$ (120-200€)
Unemployment: 24%
Major trading partners: United States, Antigua and Barbuda, Belize, German, China, Japan, Netherlands,

 

 

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Doing Business in Grenada

Trade & Investment Opportunities

Grenada is one of the most open economies in the world. The regulatory environment that governs trade and investment is relatively free. The country’s economic structure is highly diversified, based on the contribution of agriculture, manufacturing, tourism, construction, communications, transportation and government. The main export destination for goods from Grenada is the United States, followed by OECS countries and the Netherlands. Given the small size of the local economy, companies need to export from an early stage of their development and a wide range of goods and services have to be imported.

Under the Grenada International Company Act, investors can choose one of three forms of offshore companies: the sole proprietorship, the partnership or the limited liability company. Of these three types of offshore companies offered in Grenada, the limited liability company is in fact the most commonly used offshore company. The primary objective for incorporation of an international business company such as a Grenada offshore company is to legally reduce taxes, and the offshore company is ideal for tax planning and wealth management. From business services aspect, the Grenada offshore company is used as a legitimate enterprise providing services, used for other business transactions in a tax-free environment.Grenada offshore companies benefit from tax exemption on all international profits or income earned outside Grenada. Additionally, there is no withholding tax, companies do not pay tax on capital gains, inheritance, or gifts acquired through death or succession. The tax exemptions applied to Grenada offshore international offshore companies is guaranteed for a 20-year period, commencing at the date of incorporation.

Incorporation of Grenada offshore corporations is relatively fast, whereby a Grenada offshore company can be formed, registered and ready for use in as little as five days.

Grenada international companies can be incorporated with a single shareholder and a single director (who can be the same person or a legitimate company; Grenada offshore laws allow companies to use corporate directors and shareholders.

The nationality or residence status of the beneficial owners, directors or shareholders does not factor into incorporation requirements. Persons of any nationality can own Grenada offshore companies. Details of the beneficial owners, directors and shareholders are not part of the public record.

While there is no specific minimum capital requirement, the standards authorized share capital is US$50,000. Permitted share types are: registered shares, shares of no par value, preference shares, redeemable shares and shares with or without voting rights.

All Grenada exempt corporation s must appoint an official Company Secretary. that can be a corporate body or an individual.

There is no requirement for a General meeting and meetings of the directors and shareholders can be held in any country by telephone or other communication devices.

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The World Bank “Ease of doing Business -ranking”

Overall rank 2016: rank 142th
– Starting a business: rank 82
– Dealing with construction permits: rank 128 (average processing time 38 days)
– Getting electricity: rank 73 (average installation time 146 days)
– Registering property: rank 141 (average processing time 32 day)
– Getting credit: rank 142
– Protecting minority investors: rank 132
– Paying taxes: rank 141 (average company tax from profits 48.4%, average time used for taxation 140 hours per year)
– Trading across borders rank 131
– Enforcing contract: rank 76 (average 688 days, average cost from standing amount 32,6%)
– Resolving Insolvency: rank 168

 

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Second Citizenship & Moving to Grenada

Grenada – Citizenship by Investment Programme

In 2013, the independent island nation of Grenada re-launched their Citizenship by Investment Programme.

  • A Grenada passport allows visa-free travel to more than 135 countries.
  • Grenada offers no income, wealth or inheritance taxes.
  • There is no requirement to visit Grenada in order to qualify for citizenship through real estate investment, although all applicants are subject to a strict background check.
  • The granting of citizenship is at the sole discretion of the government. There is no guarantee that the applicant will be approved.
  • Large family-friendly programme.
  • E2 Visa opportunity.

Citizenship by Real Estate Investment Option

To qualify, the applicant must invest in approved real estate with a minimum value of US$350,000.

The process of obtaining Grenada Citizenship by Investment usually takes 3-4 months. The applicant must enter into a sales and purchase agreement with an approved real estate project and transfer full investment and associated fees to a Escrow account controlled by an on island attorney. Once it is done, the authorized agent submits applications and required documents to the Government and receives the Approval and the Certificate of Naturalization. With these documents on hand, the authorized agent submits request for passport.

Investment minimum: US$350,000
Real estate holding period: 4 yrs
Legal & Escrow: US$12,000

Government processing fees:

Investor: US$50,000
Spouse: US$0
Dependents: US$25,000 per after 3 dependents

Approved Real Estate in Grenada

  1. MOUNT CINNAMON RESORT
  2. LEVARA BEACH RESORT

Citizenship by Donation Option

Official entity: National Transformation Fund (NTF)

In order to qualify for this programme, the applicant makes a donation to the government-controlled National Transformation Fund (NTF). This option allows one to complete the process in two stages: the permanent residence stage and the citizenship application stage. However, you can apply directly for citizenship only.

The minimum investment is US$200,000 and additional fees apply per family member.

Donation Amount:

Investor only: US$200,000
Investor + Spouse US$225,000
Investor + Spouse+ 2 kids US$275,000

Need more details about citizenship program? Please call us or fill in the form and we will get back to you shortly!

 

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Taxation in Grenada

Taxes in Grenada

  • Residence: A company is deemed to be resident if it is incorporated in Grenada or centrally managed and controlled in Grenada.
  • Basis: A resident company is taxed on worldwide income. A non-resident company is taxed on income derived or sourced from Grenada.
  • Taxable income: Taxable income is calculated as net profit before tax, adjusted for non-deductible expenses and allowable deductions.
  • Taxation of dividends: Dividend paid to residents and non-residents are not subject to tax.
  • Capital gains: Capital gains generally are treated as ordinary income and taxed at the standard corporate tax rate of 20%. However, gains on qualifying holdings are exempt in certain conditions are satisfied.
  • Losses Losses can be carried forward for a maximum of three years. Losses ultilized may offset only 50% of the taxable income any one year. The carryback of losses is not permitted.
  • Foreign tax credit: No
  • Participation exemption: No
Taxable income: 30%
Taxation of dividends:
VAT registration: The registration on threshold is a total value of supplies exceeding XCD 120 000 per annul. Voluntary registration is allowed at the discretion of the Comptroller of Inland Revenue.
– VAT Rates: The standard rate is 15%. A reduced rate of 10% applies in the tourism sector and a 20% rate applies to the telecommunications sector. Certain goods and services also may be zero-rated or exempt
Surtax: No
Alternative minimum tax: No
Withholding tax (general): 15%
– From Dividends Dividends paid to a nonresident are subject 15% withholding tax.
– From Royalties Royalties paid to a nonresident company are subject 15% withholding tax.
– From Interests Interest paid to a nonresident company are subject a 15% withholding tax.
– Technical services Technical service feels paid to a non-resident company are subject a 15% withholding tax.
Transfer tax: Imposed on the transfer of real property ranges from 5% to 15%, depending on whether the property is being transferred to a resident or a non-resident. The tax is payable by the seller on property values in excess of XCD 20 000. Where property is transferred by way of deed, tax is payable on property values in exceed of XCD 150 000.Nonresident purchasers must obtain an alien landholding license at a cost of 10% of the value property.
Capital gains tax: Not subject to tax
Real property tax: Property tax is assessed on the market value of real property and ranges from 0% to 0.5%, depending on the use of the property. Specific rates apply to land and buildings. An exemption of XCD 100 000 is provided on the building value of  owner-occupied property, but the exemption applies to only one property per taxpayer
Social security: 5% of employee earnings, up to XCD 5 000, per month
Payroll tax: No
Stamp duty: 1% applies in certain circumstances
Capital duty: No
Tax treaties: Treaties are in force with CARICOM and the United Kingdom
Anti-avoidance rules:
– Transfer pricing No
– Thin capitalization rule No
– Disclosure requirements No

Compliance for corporation:

  • Tax year: The year is based on the company´s fiscal year end.
  • Consolidated returns: Group taxation is not  available, each company must file a separate return.
  • Filling requirements: The tax return must be filed within three months of the company´s fiscal year end, along with financial statements
  • Penalties:  Penalty of 10% of the tax owed or XCD 100, plus 1% of the tax owed for each month the return is outstanding, may apply
  • Rulings: May be requested
  • Tax authorities: Inland Revenue Department

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Personal Taxation in Grenada 2016

Personal taxation basis:

  • Resident individuals are taxed on their income derived from Grenada. Nonresident individuals are taxed on income derived or sourced in Grenada

Tax Residence:

  • An individuals is considered resident if he/she is physically present i Grenada for at least 183 days in a fiscal year.

Filling status:

  • Each individual must file a tax return, joint filing is not permitted

Income tax rates in Grenada

  • 30% on income excess of XCD 60 000

Social security payments in Grenada:

  • An employee contribute at a rate of 4% of earnings, up to XCD 5 000 per month

Inheritance/estate tax in Grenada:

  • No inheritance tax, but gifts may be subject to transfer tax

Net wealth/net worth tax in Grenada:

  • No

Tax year:

  • Calendar year

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OUR OFFERS IN GRENADA

  • business planning, tax consulting by Novasigma
    BUSINESS CONSULTING FROM 125€/h
  • TAX & WEALTH PROTECTION PLAN

NOVASIGMA IN GRENADA

Consulting & advisory services for Grenada's entities

  • Due diligence process
  • Foreign Market entry & Supplier search
  • Business Plans & Descriptions
  • Development & Capital Advisory
  • International Tax Planning
  • Funding & Investor Search
  • Citizenship in Grenada
  • Business Restructuring via Offshore entities
  • Exit Strategy & IPO
  • Problem solving in Grenada | by Novasigma Accounting & Law partner office

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Incorporation, administration & business services in Grenada

Incorporation services in Grenada

  • New company formations in Grenada
  • Company Closures and liquidations in Grenada

Company administration in Grenada

  • Legal registration address service for a Grenada’s company
  • Company secretarial service for a Grenada’s company
  • Nominee director services
  • Nominee shareholder services

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Additional business services in Grenada (by Novasigma Certified Partners)

  • Virtual office services in Grenada
  • Hosting services
  • Real estate in Grenada (offices, trade facilities, industrial)

Accounting, bookkeeping & audit for a Grenada's entity

Value Added Tax (VAT)

  • VAT registration
  • Advice on VAT scheme options
  • VAT returns and declarations

Audit

  • Annual accounts in view of an annual audit and attend accounting audits

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Legal services for Grenada's companies and business owners

Legal services in Georgia for all Novasigma Clients including companies and their owners and directors

Novasigma has built in Grenada a team of lawyers, associates and legal advisers to assist our clients with a business and tax planning, overseas business operations, risk management and other legal matters. Primarily focused on business transactions, Novasigma Accounting & Law corporate attorneys are a great asset to a small and large businesses. With a background on corporate law, our corporate lawyers and legal advisers have an in depth knowledge on the transactions that may put your business at risk of litigation. These include contracts and negotiations, taxation laws, business structuring, buy/sell agreements, and intellectual property, among others.

PLEASE CONTACT US FOR MORE INFORMATION ABOUT LEGAL SERVICES IN GRENADA

Banking, financial and insurance services in Grenada

Banking services in Grenada

  • Business bank accounts
  • Personal bank account opening for business owners
  • Payment service providers
  • Investment solutions
  • Alternative banking solutions

Financial services in Grenada

  • Debt collection services
  • Invoice funding & cash flow solutions
  • Factoring
  • Leasing
  • Wealth management

Insurance services in Grenada

  • Insurances for corporations
  • Insurances for business owners and their families

PLEASE CONTACT US FOR MORE INFORMATION ABOUT BANKING & FINANCIAL SERVICES IN GRENADA

Tax residencies & Immigration services

  • Meeting with Novasigma before applying Grenada’s residency
  • Assistance in applying a tax residency from Grenada
  • Personal bank account in Grenada
  • Second Citizenship and Passport
  • Address service available for Novasigma business clients

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NEWS AND BUSINESS OPPORTUNITIES IN GRENADA

  • High Net Worth Individuals immigration soars 16%
  • Offshore bank account opening with Euro Pacific Bank
    Euro Pacific Bank- New USD Route available
  • Use an Offshore Company for Cryptocurrency Tax Benefits

Interested in Grenada? Please leave us a message and we will get back to you shortly.

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